Developing a CPG Marketing Strategy: The Good, the Bad, and the Opportunity
The world of consumer packaged goods (CPG) marketing is full of growth opportunities for unique and compelling brands. With these opportunities comes significant competition as brands strive to differentiate and dominate within crowded categories. Maggie Gotszling, Director of Account Strategy at Coegi, looks at how CPG marketers can run more effective media campaigns.
With a large consumer base, there is often concern that marketing budgets are too small to impact business results. However, strategic marketers can use this to their advantage and create a smart plan that builds impact with their most qualified audiences.
The Good: Identifying Ways to Drive Growth for CPG Brands
Luckily for CPG brands, there is a vast availability of audience data that can be activated on digital platforms. This allows marketers to scale among niche audiences, bringing new learnings of consumer behavior to adjacent personas and capitalizing on personalized segments unique to your brand. This data is particularly rich because it combines information from various sources. This can range from offline purchase data to behavioral or interest data from third-party data providers to proprietary proprietary data.
This audience data can help your CPG brand build a personalized media strategy, fueled by unique consumer insights, and identify the most effective platforms, channels and ad types to achieve key objectives. throughout the consumer journey. By using this consumer data and research-driven approach, brands can stand out with campaigns that respond to consumers’ mindsets, motivations and preferences, and reach them when and where it matters most.
The bad: understanding what could hinder performance
While there’s a lot of freedom knowing you can scale cross-platform campaigns and access millions of data points for audience targeting, it can be difficult to figure out where to start. Hanging on to disparate line items like picking data partners, combining tons of creatives, and focusing on ever-changing ad spaces can take you away from your primary focus and cost both dollars and dollars. time. Instead, focus on building a cohesive strategy using channels that can work together rather than being siled and preventing cross-platform performance comparisons.
Also, I would be remiss if I did not mention the limitations that marketers will face as data privacy restrictions are tightened. These changing regulations severely limit traceable online actions, making it difficult to measure ROI and implement historical learnings based on attribution models.
The Opportunity: Focus on Key Strengths or Trends
Do not despair, traders – all hope is not lost! Challenges give way to new opportunities to evolve and strengthen strategies. With CPG, that means moving away from oversimplified mass media buys and instead focusing on key brand messages that will influence your best brand advocates and influencers. Key to doing this is aligning media and creative teams, discussing ways to test creative messages within channels and across audience segments to understand what creates the greatest impact and ensure clarity of what success looks like.
And, perhaps most importantly, marketers need to make sure they look beyond vanity metrics and dive into business data and directional media metrics to identify trends that signal success. Keeping these datasets in sync is especially important as we prepare for the move away from the third-party cookie and face less accurate multi-touch attribution. Instead of looking only for direct 1:1 attribution, explore a variety of business and media metrics over time to uncover unique learnings and better understand the incremental impact of advertising on your brand.
Going forward, CPG marketers have many ways to conduct more effective media campaigns. First, know your audience. A solid audience strategy backed by a solid understanding of their behaviors, motivations, preferences and media consumption will reduce media waste by ensuring ads are shown in the ideal places and with an effective message.
Second, don’t get distracted by disparate line items. Instead, focus on business goals and do your due diligence to ensure you’re consolidating platforms to the most effective placements. That being said, don’t overlook data trends that may suggest that initially successful placements are no longer generating the desired results.
Finally, drive success through personalization. This means having a personalized messaging strategy that speaks to your micro-targeted consumers as well as formulating a unique measurement framework that aligns with each of your brand objectives. Take advantage of these opportunities to grow your CPG brand and impact key audiences while maintaining maximum budget efficiency.